States seek to advocate for low-cost insurance in lawsuit

ALBANY, N.Y. >> New York and California attorneys general are leading a 16-state charge to intervene in a lawsuit that would threaten compensation to insurers who provide for poorer people.

New York Attorney General Eric Schneiderman and California Attorney General Xavier Becerra Thursday moved to intervene in the appeal of a lawsuit that challenges cost-sharing reduction payments allowed under the Affordable Care Act.

The payments are made to insurers to offset costs of lower price insurance plans. House Republicans sued the Obama administration in 2014 arguing the payments are illegal because they’re not authorized by Congress. The Obama administration appealed, but the Trump administration has threatened to drop the appeal.

The motion to intervene argues that the states have a concrete interest in continuing the payments to protect low-income residents.